RBI restores default loss guarantees for NBFCs
after close1 source ↓written by the desknot a recommendation
The Reserve Bank of India has reinstated default loss guarantees (DLGs) for non-bank lenders, easing previous restrictions. This change allows NBFCs to factor DLGs into their loan loss provisions, reducing provisioning pressure and enhancing profitability. The revised framework, effective immediately, is expected to boost credit expansion and encourage fintech loan origination.
Not investment advice. For informational purposes only.